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TARIFF FOR GAS SERVICE TXU GAS COMPANY
<br /> RATE SCHEDULE: 31 ! General Transportation Contract Terms and Conditions
<br /> APPLICABLE TO: Entire System I REVISION: 0--
<br /> I DATE:
<br /> EFFECTIVE
<br /> DATE:
<br /> i PAGE: 8 of 13
<br /> The Gas will be at temperatures not in excess of 120 degrees Fahrenheit nor less than 40 degrees
<br /> Fahrenheit, provided that the Gas will have a hydrocarbon dew point not to exceed 40 degrees
<br /> Fahrenheit at the delivery pressure, aha will have a heat content of not less than 950 nor more than 1.100
<br /> Btu per cubic foot under the conditions of measurement contained herein. Company will not be obligated
<br /> to accept any Gas delivered by Customer (or Customer's Designee) under any Transportation Agreement
<br /> that is not interchangeable with other Gas in Company's p~peline at the Receipt Point(s) listed ~n such
<br /> Transportation Agreement. Company's determination of such interchangeability will be based upon a
<br /> factor that is equivalent to the quotient obtainec~ by dividing the total heating value of such Gas,
<br /> expressed in Btu. by the square root of the specific gravity of such Gas. Such factor must be within =:7%
<br /> of the interchange factor established by Company for its system at the Rece,pt Point(s).
<br /> (b) Quality Violations, If at any time the Gas fails to meet the quality specifications enumerated
<br /> herein, then the party receiving such Gas will notify the party delivering such Gas. and the delivering party
<br /> will immediately correct such failure. If the detivenng party is unable or unwilling to deliver Gas according
<br /> to such specifications, the party receiwng such Gas may refuse to accept delivery of Gas under the
<br /> applicable Transportation Agreement for so tong as such condition exists.
<br /> (c) Amendment of Quafity Provisions. Notwithstanding anything contained herein, Company
<br /> reserves the right, at any time and from time to time, to unilaterally amend, on a nondiscriminatory basis,
<br /> the quality specifications set forth above upon g~wng Customer at least 30 Days' prior written notice of
<br /> any such change(s).
<br />
<br /> 12. Additional Facilities
<br /> If new or additional facilities or equipment are required or desirable, in Company's reasonable
<br />judgment, to effectuate the receipt or delivery of Gas under any Transportation Agreement, then
<br />Customer will reimburse Company, within ten Days from the date of receipt of Company's ~nvoice, for any
<br />tap valves, metering facilities, meter equipment, pipelines, and associated equipment, and all labor,
<br />overhead expenses and applicable taxes, attributable to the installation of such equipment. If the
<br />invoiced amount is not paid when due, then Customer will pay interest at the lesser of 18% per annum or
<br />the lowest legal rate of interest (provided that if Customer is a State Agency, as defined in Section
<br />2251,001 of the Texas Government Code, then Customer will pay interest in accordance with Texas
<br />Government Code Section 2251.025 or Section 2251.026, whichever is applicable). Failure of Company
<br />to receive total reimbursement within ten Days of Customer's receipt of Company's ~nvo~ce, or such later
<br />date as prescribed by applicable law, will allow Company to suspend and/or terminate any Transportation
<br />Agreement with respect to the service requiring new or addibonal facilities.
<br />
<br /> 13. Taxes
<br /> (a) Reimbursement for Taxes. Customer will pay Company, by way of reimbursement, ail Taxes
<br />paid by Company with respect to the transportation service and any other service provided under any
<br />Transportation Agreement, and that may be related to any associated facilities involved in the
<br />performance of any Transportation Agreement. If any such Taxes are paid by Company to any
<br />governmental authority that are calculated based upon the value of or price paid for the Gas transported
<br />under any Transportation Agreement, then Customer will notify Company of the purchase price of such
<br />Gas to enable Company to calculate and pay all such fees and taxes to appropriate governmental
<br />authorities in a timely manner. If Customer fails or refuses to notify Company of the purchase pnce of
<br />such Gas within 30 Days from the date the related transportation service is provided, then Company will
<br />estimate the purchase price of such Gas in accordance with the provisions of any applicable franchise
<br />ordinance, or, in the absence of such a franchise ordinance, Company will have the right to pay such fees
<br />and taxes and to be reimbursed by Customer based upon the Actual Gas Cost Incurred by Company, as
<br />defined in Rider GCR - Gas Cost Recovery, for the relevant period.
<br /> In any event, Customer will indemnify Company for, and hold Company harmless Irom, any and
<br />all claims, demands, losses, or expenses, including attorneys' fees, which Company may incur as a result
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